Facts about Renters Insurance
5 Things You Should Know About Renters Insurance
What is renters Insurance? Why do I need this type of Insurance? What exactly does it cover? How much does an average Renters policy cost? Is this Insurance different than Homeowners Insurance? These are all very important questions to ask when you are thinking about purchasing renters Insurance.
What is Renters Insurance?
Renters Insurance is just as it sounds – an Insurance policy that covers a person who is renting a home/apartment/condo.
This person does not own the occupancy, they are renting from the owner, also known as a tenants policy.
A Tenants policy will cover the insured’s personal belongings from theft, water damage, natural disasters and bodily injuries. Some property managers require the tenant to carry insurance, whereas some do not require this.
Why Do I Need Renters Insurance?
Like any loss or natural disaster, it is unforeseen and unintentional. Without having your personal belongings covered, if there were to be a flood, fire, earthquake, etc. your belongings would not be covered and you would need to replace these on your own.
If you do have renters insurance, this will cover your belongings from natural disasters and theft. Also, liability coverage will cover bodily injury expenses if a guest or friend should hurt themselves while at your house/apartment.
Insurance is always an important, and smart thing to have for when you may need it.
How Much Does Renters Insurance Cost?
Tenants Insurance can be bundled with your auto policy (any insurance policy) which can lead to additional savings, making the policy very affordable. Some people may pay as little as $4-5 a month with the policies bundled.
The average cost for a renters policy, that we typically see, is about $11-14 a month.
This will include coverage for your personal belongings up to the limit you select ($10,000 -$100,000) and personal liability up to $500,000. The price range with vary depending upon the coverages and limits you choose.
Is Insurance For Renters Different from Home Insurance?
Yes, tenants insurance (also known as tenants Insurance) is for renters, not homeowners. The person or property management who owns the home that you are renting will have either a homeowners policy or dwelling policy and the tenant should have a renters policy. The two policies cover different things.
You are only paying for the policy to cover your personal belongings and liability, and the homeowners policy will cover the structural damage of the home if need be.
Insurance for renters is significantly cheaper, in most cases, than a homeowners insurance policy.
Last Updated on by Alexis Karapiperis